2012 Bond Premium Reserve Allocation – Staff Recommendations November 21, 2014
Background & Context • Following voter approval in November 2012, DPS sold General Obligation Bonds and generated original issue premium of approximately $46 million which was used to create a reserve account to support delivery of bond projects. • Approximately halfway through the implementation of the bond program, DPS staff has evaluated the level of reserves as well as forecasts of remaining projects, and recommended a release of $30 million to be applied to expand current project efforts or new, high-priority project needs (as presented Nov 7 th ) • The Bond Oversight Committee (BOC) was updated on the current status of bond initiatives across the three major spend categories (Facility Maintenance, Technology/Security, and Capacity Expansion) over the past six months, and has established criteria to assist in prioritizing project needs. • DPS staff have evaluated needs across the major project categories, and are providing recommendations to the BOC for use of the available funds. As was the case in planning for the 2012 bond program, the volume of needs and requests is very o large, significantly exceeding the funding available to satisfy them. Staff has prioritized needs within each area, and recommended a “package” of funding priorities. o • Following a detailed review of the needs and recommendations against established criteria, the BOC plans to share recommendations to the DPS Board of Education in January 2015. The Board of Education will vote on the recommendations at that time. - 2 -
Bond Oversight Prioritization Criteria Maintenance Technology Capacity Process Overview as adopted Nov 7 Overall, the projects that the Bond Oversight Committee recommend should be described with sufficient specificity and detail that the district can readily be held accountable for the proper and timely use of the funds allocated. More specifically, the Committee recommendations are based on projects aligning with these following key criteria: (not in prioritized order) • The project is necessary for the safe operation of a facility or other capital asset to meet health and safety code compliance. • The project is critical to the implementation of the ongoing instructional practices of the district. • The project supports, leverages or enables the opportunity to attract other financial resources to support a district priority. • The project enables a reduction in operating costs or leverages resources, thereby improving the long- term financial health of the district. • The project supports the district’s technological infrastructure. • The project fulfills commitments made to communities and taxpayers of the 2012 bond initiative. • The project meets critical needs identified since the passage of the 2012 bond or of increased urgency since the 2012 bond. • The project supports DPS’s shared core value of equity, as embodied in the goals of the Denver Plan 2020. - 3 -
Maintenance Technology Capacity Process Overview Overview of Prioritization Process Staff and Bond Oversight Committee All Principals of district review of 2012 Bond Funded managed and charter schools Projects, Unfunded 2012 Projects had an opportunity to submit and Outstanding Needs project requests. 42 schools submitted U PDATED M AINTENANCE U PDATED T ECHNOLOGY P RINCIPAL R EQUESTS requests. See appendix. U PDATED C APACITY All requests were merged into N EEDS N EEDS N EEDS appropriate sub-categories and prioritized with the whole list. Today’s Project Recommendations - 4 -
Maintenance Technology Capacity Process Overview Recommended Review Process Friday Nov 21 st Wed Dec 3 rd Friday Dec 12 th • • • Review the Hear from public on Goal of this meeting is for recommendations and proposed the committee to vote on justification for each recommendations recommendations to the investment area, in Board of Education addition to the ‘next projects for investment’ • Staff will respond to questions that arise on • Nov 21 st or Dec 3 rd Identify questions that need additional follow-up • Temperature check on whether the committee, in a preliminary fashion, feels that anything that is out should be in or vice versa - 5 -
Maintenance Technology Capacity Process Overview Overview of Recommendations Staff Additional Need Agenda Category Recommended Evaluated & Time Prioritization* Presented 7:45 – 8:15 Maintenance $8.3M $8.2M 8:15 – 8:45 Technology $7.0M $8.1M+ Capacity Expansion/ 8:45 – 9:30 $18.1M $22.0M Renovation Total $33.4M* $38.3M+ Process • Review information on recommended projects and other evaluated need • Identify open questions with regards to prioritization *Note: Our currently recommended amount exceeds the $30M by about 10%. While we believe that some further cost validation in the coming weeks may help bring this down, we will also look for the committee’s guidance in getting to the $30M target, providing refinement where requested. - 6 -
Facility Maintenance Estimate of Current 2014 Maintenance Technology Capacity Process Overview Priority Needs (as presented Sept 26) The team has reviewed current work schedules, maintenance, safety, and ADA/Code requests along with unfunded projects from 2012 Bond to assess the most urgent needs for investment Overview of Most-Critical Maintenance Needs* Critical High Medium *Note: Not exhaustive of maintenance need; focused within available funding window to provide more detail - 7 -
Maintenance Technology Capacity Process Overview BOC Feedback on Previous Facility Maintenance Criteria While the BOC did not formally adopt a set of Facility Maintenance Criteria, we referenced these perspectives in addition to the BOC criteria to help us prioritize amongst projects 2012 CPAC Criteria Review – Maintenance (respondents selected their top 3 criteria) Safe or efficient operation of a facility Improving the teaching and learning environment Financially and environmentally sustainable Regional equity and strengthening the district as a whole One-time capital projects Support the technological infrastructure Visible and real improvements to our facilities 0 5 10 - 8 - N = 11 survey responses, from summer 2014
Maintenance Technology Capacity Process Overview Facility Maintenance Recommendations (1 of 2) Priority Building Names Category Description 2012 Bond History Estimate 1 – Mechanical New Request $200,000 Ashley Replacing the EPO Switches in the Critical Barnum Boiler Rooms. These switches provide Colfax boiler shut-off in emergency situations. Fire code issue College View Columbian Del Pueblo Fairview 2 – Montbello Fire Systems Expanding fire suppression system to New Request $950,000 Critical more classrooms / hallways. Fire code issue 3 – Teller Mechanical Completing kitchen hood fire New Request $229,500 Critical Barnum suppression updates. Code issue Remington 4 – Rishel Mechanical Completing boiler work to maintain Unfunded 2012 $1,960,000 Critical Kaiser Request functioning heat. At risk of imminent failure 5 – Fairmont Mechanical Replacing chiller that has already failed. New Request $880,000 Critical 6 – Bryant Webster Mechanical Completing boiler work to maintain New Request $860,750 Critical functioning heat. At risk of imminent failure Plumbing New Request $192,600 7 - Edison Replacing hot water storage tanks and Critical Sabin domestic hot water pipes. At risk of Smedley imminent failure - 9 -
Maintenance Technology Capacity Process Overview Facility Maintenance Recommendations (2 of 2) Priority Building Names Category Description 2012 Bond History Estimate 8 – Montbello Mechanical Completing urgent repairs and upgrades New Request $1,000,000 Critical to HVAC system that have arisen with recent cold weather. System already failed 9 – Bromwell ADA & Code Replacing stage curtains which have fire New Request $385,200 Critical Brown retardant that has failed. Fire code issue. Newlon Total Critical Priorities $6,658,050 Replacing degraded soccer field with turf New Request $1,642,000 10 – Bruce Site Work field. Due to heavy use need to re-sod High Randolph every couple of years, need creates a safety, maintenance and equity issue given that most other large high-schools have turf fields Total Critical and High Priorities $8,300,050 Recommended - 10 -
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